(RFID World Canada) Chipless tag technology is becoming widely accepted due to its cheaper costs and comparable functions to RFID. Chipless tag technology not only has similar features to RFID such as track and trace but it can offer such a feature without the need for a real-time and line-of-sight technology. Despite the “hype” around chipless tags, it is unlikely to comprehensively replace RFID tags in the near future. Instead, presented with the current scenario, it is more likely that the two types of technology can coexist as do the RFID and UPC barcodes, with the goal to provide end-users with the best possible solution. Factors hampering the growth of chipless tags in the market, are the lack of ample awareness about the possible benefits, offered by RFID and chipless tag technologies as well as the absence of standards.
According to the new market research report by Global Industry Analysts Inc. on Chipless RFID Tags, it is evident that the United States and Europe account for a major share of volume sales in the global chipless RFID tags market. In terms of value, Europe and Asia-Pacific markets offer the maximum growth opportunities and potential. Although chipless tags have the potential to offer higher value to customers using applications, the overall product value and level of functionality required is fairly low due to the tags low cost and low memory capacity. The tags are adequate for standalone and closed loop systems applications such as basic track and trace functions. The client-base of chipless technology are likely to be startup small and medium-sized companies which are primarily looking for cost-efficiency. Furthermore, the relatively low emphasis on standards is also likely to attract smaller businesses to deploy chipless tag technology. Due to the tags ability to tolerate gamma sterilization, niche markets such as the pharmaceutical industry are likely to adopt it.
The maximum growth opportunity for RFID technology will transmit from item level tagging of various products. A substantial reduction in cost of tags will result due to the widespread application of the technology. The tag can cost only 0.1 cent a feat, which is possible only through the use of chipless and printed RFID technologies. Another requirement for item-level tagging is the ability to directly print the tag onto the item or the package. This will be a feature that market participants will favour. Since printed and chipless RFID do not consists of a microchip, the result is a lower cost in manufacturing such technology
